Cullaun Capital Reports Progress Of Multi Asset Development Finance Strategy

Cullaun Capital today confirmed that it was on track with the roll out of its multi-asset class strategy, including the provision of development finance for the construction of two nursing homes in Dublin.

Cullaun Capital expects to reach €100 m in committed facilities over the coming months, involving support to a range of sectors, geographies and borrowers. The lender is backed by TPG Sixth Street Partners, the global finance and investment firm with over $30bn in assets under management.

In recognition that equity availability is often a barrier to transactions progressing, the lender offers competitive stretched senior finance to developers with a track record of delivering quality. Cullaun Capital supports developments of any size from €2m upwards by providing financial solutions based on the developers’ own business plan.

One of the most recent closed deals was with Bartra Capital to support the construction of two of their planned nursing homes. Beaumont will provide rooms for 221 residents and on completion, will be the largest nursing home in Ireland.  The Northwood development will provide facilities for a further 118 residents. This is one of the first deals where an alternative lender has provided the construction finance for a nursing home.

In addition, Cullaun Capital has closed deals to support the development of private and social housing developments in Dublin and Galway with a transaction in Cork imminent.  It has also closed a transaction which will enable a developer to seek planning for 230 apartments and associated retail facilities in Dublin.

The company’s first deal, closed in November 2018, supported the development of apartments in Dublin 18.  In December, the firm closed a deal for a specialist firm involved in the acquisition and refurbishment of properties for the social housing sector and another against land in Galway, which is going through the planning process and will support the development of over 150 homes.

Commenting on the Irish development market, Founder and Chief Executive Stephen J. Bell said: “The shortage of development finance is still a significant problem across Ireland following many years of very little new building. There is a clear and long-term need for sustainable progress to be made with an estimated 50,000+ deficit in house construction. But this is not restricted to housing.  Many other sectors are being impacted, including nursing homes where there are thousands of beds required over the coming years. It will take all our collective efforts to address these challenges.

“We were delighted to work with Bartra Capital, who have identified the need to address the chronic shortage of nursing home beds in Dublin. We believe this shortage also extends to other parts of Ireland, particularly Cork.  As the demographics of our population continue to change, the lack of quality nursing homes to provide adequate care is becoming more apparent. Developers with the specialist knowledge required to build these facilities need access to finance and, as a multi-asset class lender, we are able to provide it.”

Ten months on, Cullaun Capital is seeing strong demand across all locations in Ireland and has received proposals from 22 different counties – a clear sign of the national requirement for development finance. Asset classes most in demand include private and social residential, nursing homes and solutions for those who do not aspire to the traditional 3-bedroomed semi-detached house. All have something in common – a structural dislocation of supply and demand caused by demographic shifts and regulatory changes which have resulted in gaps that to date have not been fully addressed.

Daire McCarthy, Head of Origination continues: “We experienced a strong, positive response for our multi-asset class strategy over our first ten months. We are also pleased to see the high level of enquiries we have had from outside Dublin.”

Pictured above: Co-founders of Cullaun Capital: head of portfolio management Noel Ross; head of origination Daire McCarthy and chief executive Stephen Bell.